Country : | Australia |
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1) Advise your client on which scenario should be selected. Explain and justify why you would advise this selection (approx. 100 words).
2) Comment on the variance noted between the scenarios (approx. 100 words)
3) Break-Even Analysis only on the scenario selected from Part B Question 1:
a. Calculate the break-even analysis mathematically.
b. Show the break-even analysis graphically.
c. Why is break-even analysis an important tool for a business? (References required) (approx. 150 words)
4) Produce a Pie Graph showing the break-up of expenses in the business (all expenses including commission) Comment on the pie graph. (approx. 100 words)
5) From your analysis provide your recommendation to the client with supporting evidence. (Hints: Consider the contribution margins, NP and GP analysis, and current economic outlook
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